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HomeMy WebLinkAboutCOD-002-01 . Cl!1l#]gron REPORT Date: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE GII1- t/?3-o/ SEPTEMBER 4, 2001 Meeting: Report #: COD-002-01 File#M By-law # 6( /' I ?~ Subject: LEASE AGREEMENT, 166 CHURCH STREET, BOWMANVILLE ONT. Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-002-01 be received; 2. THAT the lease agreement for the first floor only of 166 Church Street, Bowmanville, Ontario in the amount of $2.00 per annum with Aquicon Construction Co. Ltd., be approved; and 3. THAT the attached by-law marked schedule "B", authorizing the Mayor and Clerk to execute the necessary agreement be passed; FORTHWITH Attachment #1 Schedule "B" ~eviewed by(J ~---c...;>u.... Marie Marano, H.BSc, AMCT, Franklin Wu, M.C.I.P. Director of Corporate Chief Administrative Officer Services MM/LAB/eo CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905) 623-3379 F (905) 623-0608 907 REPORT NO.: COD-002-01 PAGE 2 BACKGROUND AND COMMENT The Municipality of Clarington owns the vacant building at 166 Church Street. It is proposed that the Municipality of Clarington lease the first floor office space to the Contractor for the construction of the new Clarington library and the Municipal Administration Centre expansion for a nominal fee of $2.00 per annum, plus the cost of all utilities, as well as Regional, and Municipal Property Taxes and Education Levies. Leasing of this space to Aquicon benefits the Municipality of Clarington in the following ways: 1) Reduces the number of construction trailers required on the construction site 2) Provides for some on site parking 3) Reduces operating cost for the Municipality as we currently absorb the cost of all utilities 4) Provides revenue of property taxes The term of the agreement will be from September 5, 2001 to approximately December 15, 2002. A copy of the proposed lease is attached marked schedule "A" As construction has already commenced, a forthwith approval is requested. 908 ULE "A" Page 1 of 5 THIS INDENTURE made in triplicate the first day of 2001. IN PURSUANT OF THE SHORT FORMS OF LEASES ACT BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON herein called the LESSOR of the FIRST PART and - Aquicon Construction Co. Ltd. herein called the LESSEE of the SECOND PART. WITNESSETH that in consideration of Ihe rents, covenants and agreements hereinafter reserved and contained on the part of the Lessee, the Lessor doth demise and lease unto the Lessee, the First Floor only of 166 Church Street. Town of Bowmanville, now in the Municipality of Clarington, from month to month. Space to include parking for vehicles as designated and shared use of the common area and driveway. The Lessee covenants with the Lessor to pay Basic Rent of $2.00 per annum, plus all Regional and Municipal Property Taxes and Education Levies as they become due unto the Lessor commencing on September 5, 2001 to approximately December 15, 2002, The Lessee shall be responsible for the cost of all utilities, insurance, maintenance, grass cutting, snow clearing and removal and alterations specified below. Basic Rent and Property Taxes shall be considered as accruing from day to day where it becomes necessary for any reason to calculate rent for an irregular period of less than one calendar month, an appropriate apportionment and adjustment shall be made. NOTICES That any notice which either of the parties is required or pennitted to give pursuant to any provision of this lease may, if intended for the Lessee, be given by a writing left at the demised premises or mailed by registered mail addressed to the Lessee at the demised premises, and if intended for the Lessor by a writing left at the premises of the Lessor at or mailed by registered mail addressed to the Lessor at the Lesso(s said premises, and such notice shall be deemed to have been given at the time it was delivered or mailed, as the case may be. ON:WP51 DATAJlEASE/Aquicon 909 DATED: August 27,2001 Page 2 of 5 Unless the context otherwise required, the word "lessor" and the word "lessee" wherever used herein shall be construed to include and shall mean the executors, administrators, successors and/or assigns of the said lessor and lessee, respectively, and where there are two or more lessees bound by the same covenants herein contained, their obligations shall be joint and several. The lessee covenants that he will not do or permit to be done on the said premises, anything which may be a nuisance, and that the lessee will use and occupy the said premises. The lessee covenants that he will not do or permit to be done any act or thing which may made void or voidable any insurance upon any building, or part thereof, upon the said premises, or which may cause any increase or additional premium to be payable for any insurance. The lessee shall not allow any ashes, refuse, garbage or other loose or objectionable materiai to accumulate in or about the building, yards, or passages of the said premises, and will at all times keep the said premises in clean and wholesome conditions, and the said lessor may enter and view the state of repair. PROVIDED that notwithstanding anything herein contained the lessor's right of re-entry hereunder for non-payment of rent or non-performance of covenants shall become exercisable immediately upon default being made. INSlIRANr.F ANn INnFMNIFIr.ATION The Tenant covenants to keep the landlord indemnified against all claims and demands whatsoever by any person, whether in respect of damage to person or property, arising out of or occasioned by the maintenance, use or occupancy of the Premises or the subletting or assignment of same or any part thereof. And the Tenant further covenants to indemnify the landlord with respect to any encumbrance on or damage to the Premises occasioned by or arising from the act, default, or negligence of the Tenant, its officers, agents, servants, employees, contractors, customers, invitees or licensees and the Tenant agrees that the foregoing indemnity shall survive the termination of this lease notwithstanding any provisions of this lease to the contrary. The Tenant shall carry: (i) insurance in his own name to provide coverage with respect to the risk of business interruption to an extend sufficient to allow the Tenant to meet his ongoing obligations to the landlord and to protect the Tenant against loss of revenues and provide a certified copy of such policy of insurance when requested to do so by the landlord's Treasurer, DN:WP51DATAlLEASE/Aquicon 910 DATED: August 27,2001 Page 3 of 5 (ii) insurance in his own name and naming the Municipality also as an insured person insuring against the risk of damage to the Tenant's property within the Premises caused by fire or other perils and the policy shall provide for coverage on a replacement cost basis to protect the Tenant's stock-in- trade, equipment, Trade Fixtures, decorations and improvements and shall contain waiver of subrogation and cross-liability endorsements satisfactory to the Landlord's Treasurer and provide a certified copy of such policy of insurance when requested to do so by the Landlord's Treasurer; and (iii) comprehensive general liability insurance in the amount of One Million Dollars ($1,000,000.00) inclusive per occurrence for bodily injury, death and damage to property including loss of use thereof. Under the policy of the Landlord shall be an additional insured person and the policy shall contain waiver of subrogation and cross-liability endorsements and an endorsement to provide the Landiord with thirty (30) days written notice of cancellation, and the Tenant shall provide the Landlord with a copy of the policy certified by the insurer. RFPAIRS AND MAINTFNANCF The Tenant, at its own expense, shall maintain and keep the Premises and every part thereof, in good working order and condition and promptly make all needed maintenance, repairs and replacements as would a prudent owner of similar premises (reasonable wear and tear and damage by fire, lightning and tempest and structural defects only excepted). The Tenant shall keep the Premises clean and in such condition as a prudent owner would do. If structural repairs or replacements to the roof, foundation or load bearing walls or the heating equipment of the Premises are required during the Term, then the Landlord shall be obligated, at its expense, to effect such repairs or replacements. The Tenant covenants with the Landlord to leave the Premises in as good repair as the Premises were at the commencement of the Term. GRASS CIITTING Grass cutting will be the responsibility of the Owner. SNOW RFMOVAI Clearing and removal of snow from the parking spaces and common areas as designated will be the responsibility of the Tenant. Al TFRATIONS (a) If the Tenant, during the Terms of this Lease or any renewal of it, desires to make any alterations or additions to the Premises, including but not limited to: erecting partitions, attaching equipment, and installing necessary fumishings or additional equipment of the T enanfs business, the Tenant may do so at his own expense, at any time and from time to time, if the following conditions are met: (i) before undertaking any alteration or addition that the Tenant may require, the Tenant shall submit to the Landlord a plan showing the proposed alterations or additions and the Tenant shall not proceed to make any alteration or addition unless the Landlord has approved the plan, and the Landlord shall not unreasonably or arbitrarily withhold its approval and items included in the plan; and DN:WP51DATAlLEASElAquicon 911 DATED: August 27, 2001 . Page 4 of 5 (ii) any and all alterations or additions to the Premises made by the Tenant must compiy with all applicabie building code standards and by-laws of the municipality in which the Premises are located. (b) The Tenant shall be responsible for and pay the cost of any of their alterations, additions, installations or improvements that any governing authority, municipal, provincial or otherwise, may require to be made in, on or to the Premises. (c) No sign, advertisement or notice shall be inscribed, painted or affixed by the Tenant, or any other person on the Tenant's behalf, on any part of the inside or outside of the building in which the Premises are located unless the sign, advertisement or notice has been approved in every respect by the Landlord. (d) All alterations and additions to the Premises made by or on behalf of the Tenant, other than the Tenant's Trade Fixtures, shall immediately become the property of the Landlord without compensation to the Tenant. (e) The Tenant agrees, at his own expense and by whatever means may be necessary, immediately to obtain the release or discharge of any encumbrance that may be registered against the Landlord's property in connection wtth any additions or alterations to the Premises made by the Tenant or in connection with any other activity of the Tenant. (f) The tenant agrees, at his own expense, and by whatever means may be necessary to secure the 1st level of the building from the remaining fioors. TERMINATION At any time during the term of the Lease, the Lessee or the Lessor may, upon ninety (gO) days written notice, terminate this Lease with no penalty. NOTICFS Any notice that one Party hereto may desire or be required to give the other Party hereto shall for purposes be deemed to have been sufficiently and properly given, if delivered personally or forwarded by registered mail and addressed in the case of the Landlord to: The Municipality of Clarington 40 Temperance Street, Bowmanville, ON L 1C 3A6 Attention: Purchasing Manager and in the case of the Tenant to the Premises and shall be presumed to have been received on the date of delivery, if delivered personally, or if forwarded by registered maii on the third business day following such mailing. Any notice shall be writing, except as expressly otherwise provided herein, and shall be given only by delivery as aforesaid in the event of postal interruption. FNIIRFMFNT This Agreement shall enure to the benefit of and be binding on the Parties hereto, and their respective successors and assigns. 912 DN:WP51 DA T AllEASE/Aquicon DATED: Augus127. 2001 , . . . ----- Page 5 of 5 IN WITNESS WHEREOF the Tenant has hereunto set his hand and seal the day and year first above written and the Municipality has hereunto affixed its seal by the hand of its proper officer duly authorized in that behalf. SIGNED, SEALED AND DELIVERED DN:WP51DATAlLEASE/Aquicon ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Mayor Clerk Aquicon Construction Co. Ltd. 913 DATED: AugUS127, 2001 SCHEDULE "B" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2001- Being a By-law to authorize a contract between the Corporation of the Municipality of Clarington and Aquicon Construction Co. Ltd., Brampton, Ontario, for lease Agreement, 166 Church Street, Bowmanville, Ontario THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington with the Corporation Seal, a contract between Aquicon Construction Co. Ltd., Brampton, Ontario, and said Corporation; and 2. THAT this agreement attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this 11 th day of September, 2001. By-law read a third time and finally passed this 11 th day of September, 2001. John Mutton, Mayor Patti Barrie, Clerk 9121 -----